ISO says both the by-peril rating rules and the combined all-perils environmental rating rules use output from Risk Analyzer Homeowners, a predictive model that develops expected losses at a much more refined geographic level than traditional territories.
With this latest enhancement, Risk Analyzer Homeowners makes available rating relativities by individual peril for several important homeowners rating factors, including Coverage A amount of insurance, deductible, and age of construction. There are nine peril categories: fire, theft and vandalism, lightning, liability, wind, water (non-weather related), water (weather-related), hail, and all other perils (excluding hurricane and earthquake). Insurers also have the option of using only the combined all-perils environmental rating rules, which have been available since June 2011.
ISO adds that it is filing the by-peril rating rules for insurers to use if they elect to license and adopt them.